Give the Major Disadvantage of Disregarding the Cost Concept and Constantly

question 163

Essay

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

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Definitions:

Cash Flows

The summed total of money flowing in and out of an enterprise, notably in terms of affecting its liquid assets.

Financing Activities

Transactions and events where a business raises funds to support its operations and expansions, typically involving debt or equity.

Issuing Debt

The process by which a company or governmental entity raises funds by selling bonds, notes, or other financial instruments to creditors.